Sun Pharmaceuticals has extended its tender offer for all outstanding shares of Taro Pharmaceuticals till April 3 in order to comply with an order issued by the Supreme Court of Israel prohibiting the closing of the issue until it pronounces judgment on the legal tussle between Taro’s non-promoter directors and the Mumbai-based firm.
The two companies have been at loggerhead since Taro broke the $454 million merger agreement in May last year, exactly a year after it was signed. Taro terminated the deal on grounds that the merger was never approved by the shareholders and that the price of $7.75 per share offered by Sun was ‘too low’. Taro and some its directors had filed a case in Tel-Aviv District Court asking for a special tender offer at a higher price. The Tel-Aviv Court had ruled that a special tender offer was not required which prompted Taro to go to the Supreme Court.
According to a release issued by Sun Pharma on Friday night, the company and the Taro promoters are in talks to resolve the issue out-of-court, as recommended by the Supreme Court.